SellerCalcs

Markup Calculator

Turn a unit cost and a markup percentage into a selling price, with the margin it produces.

Quick answer: Markup is profit as a percentage of cost: price = cost × (1 + markup). A $12.40 item at 100% markup sells for $24.80 and carries a 50% gross margin — the same profit, expressed against cost instead of price.

$

Landed or purchase cost of one unit.

%

Price = cost × (1 + markup).

Selling price
$24.80
Profit / unit
$12.40
Markup on cost
100%
Gross margin
50%
Cost$12.40
Selling price$24.80
Gross profit$12.40
Price ÷ cost (multiplier)2.00×
Markup → margin50%
Margin → markup100%
Sell 100 units for$1,240.00 profit

Quick markup → price table (cost = $12.40)

MarkupPriceEquivalent marginProfit / unit
20%$14.8816.67%$2.48
30%$16.1223.08%$3.72
40%$17.3628.57%$4.96
50%$18.6033.33%$6.20
75%$21.7042.86%$9.30
100%$24.8050%$12.40
150%$31.0060%$18.60

Markup is calculated on cost, margin on the selling price. A 100% markup is a 50% margin — the two numbers can never both be 100% unless the product is free.

Core facts
PriceFree, no sign-up
InputUnit cost plus price, markup %, margin % or profit $
OutputSelling price, profit, markup %, gross margin, price multiplier
RunsEntirely in your browser

What is Markup Calculator?

A markup calculator answers the pricing question every seller starts with: if this unit costs me $12.40, what should I charge? Markup is profit expressed as a share of cost, so price = cost × (1 + markup). A 50% markup on $12.40 gives $18.60; a 100% markup (known in retail as keystone) gives $24.80. Because margin measures profit against the selling price instead, the same $12.40 profit is a 100% markup but only a 50% margin. Sellers who quote one and price using the other end up with thinner profits than they planned, which is why this calculator shows both numbers next to the price.

Common Uses for Markup Calculator

  • Price a new product from a supplier quote and a target markup
  • Check that a marketplace price still clears your profit target after fees
  • Convert a markup you were given into the margin your P&L will show
  • Build a price list at 30%, 50% and 100% markup for the same product
  • Sanity-check a wholesale price against the standard keystone doubling rule

Markup, margin and multiplier in one table

20% markup = 16.7% margin = 1.20× cost. 30% = 23.1% = 1.30×. 50% = 33.3% = 1.50×. 100% = 50% = 2.00×. 150% = 60% = 2.50×. Bookmark the pattern: margin = markup ÷ (1 + markup). It is the conversion sellers get wrong most often when copying a competitor's pricing.

Why pricing from margin is safer

When you price from margin you are stating the outcome you need: 60% of the selling price has to be gross profit. Pricing from markup only fixes the gap between cost and price, so any fee increases erode it. On a $24.80 sale, a 15% marketplace referral fee takes $3.72 — enough to turn a healthy 50% margin into a 35% margin. Run the fee-based profit calculator before you commit to a price list.

The psychology of the price point

The arithmetic gives you a floor, not a final number. Charm pricing ($24.99 rather than $25.00), bundle thresholds and free-shipping cut-offs all shift conversion, and they change the margin slightly. Settle the economics here first, then choose the price point that converts best within that band.

Frequently Asked Questions

What is the difference between markup and margin?
Markup divides profit by cost, margin divides profit by the selling price. On a $12.40 cost sold at $24.80 the profit is $12.40 — 100% markup but 50% margin. Margin is always the smaller number for a given profit because the selling price is the larger denominator.
What is a good markup?
Retail often uses keystone (100% markup, 50% margin). Dropshippers typically work at 2–3× cost, apparel 2.2–2.5×, and low-value accessories can carry 4× or more. The right number depends on your fees, shipping and ad costs, not on an industry habit.
How do I price to hit a margin instead of a markup?
Switch the solver to margin % and enter the target — the calculator converts it to price with cost ÷ (1 − margin). A 60% margin needs a 2.5× multiplier, which is a 150% markup.
Does markup include shipping and fees?
Not automatically. The cost you enter should be your landed cost per unit, and marketplace fees and payment processing still come out of the price. Use the profit-per-order calculator for those, or the landed cost calculator to build a true unit cost first.
Can markup be negative?
Yes, if you sell below cost the profit is negative and both markup and margin go negative — the calculator flags it rather than hiding it, which is useful when checking clearance pricing.

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